Tokyo stocks open 0.58 percent higher

TOKYO: Tokyo stocks opened 0.58 percent higher on Tuesday after the dollar bounced back to a near six-year high against the yen on investor confidence in the US economy.

The Nikkei 225 index at the Tokyo Stock Exchange rose 90.71 points to 15,795.82 at the start.Japanese shares were likely to rise further, helped by the surge in the dollar, traders said.

Japanese exporters benefit from a cheaper yen when they repatriate profits earned abroad -- mostly in dollars.

"Almost all of the stock market gains we´ve seen over the last six weeks have come on the back of a strong dollar/weak yen, and this is not going to change," said SMBC Nikko Securities general manager of equities Hiroichi Nishi.

"More fundamental buying would breed confidence in a more viable rally, but participation remains thin," he said.

The dollar was at 106.07 yen in early Asian trade, compared with 106.03 yen in New York Monday afternoon, hovering around its highest level since October 2008.

The euro bought $1.2892 and 136.73 yen against $1.2895 and 136.72 yen.The Dow Jones Industrial Average fell 0.15 percent to 17,111.42 on Monday following poor economic data from China and Japan and the growing spectre of Scotland breaking away from the United Kingdom.